Michigan laying groundwork for Detroit bankruptcy

'We're burning through cash every day'

Published: 12/07/2012 at 11:36 AM

(DETROIT FREE PRESS) Gov. Rick Snyder said Thursday that Detroit’s fiscal meltdown led his staff to begin studying how Chapter 9 filings have worked in other states, but he considers municipal bankruptcy a last resort for a city that could solve its problems by leaders working together on serious reform.

“Bankruptcy is a possibility,” he said in an interview the day after Treasurer Andy Dillon confirmed that the state would begin a 30-day deep dive into Detroit’s finances, a process that could result in the appointment of an emergency financial manager.

Snyder said his hope is that Mayor Dave Bing and the City Council will begin reaching agreements on promised financial changes.